Segmentation And Target Market Analysis

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Segmentation and Target Market Paper The fundamental component of Market segmentation is a market-based strategy. Market segmentation strategies are generally used to identify and further define the target customers, and provide supporting data for marketing plan elements such as positioning to achieve certain marketing plan objectives. Businesses may grow product differentiation strategies, or an indistinguishable approach, concerning specific products or product lines subjectable to the specific requests and qualities of the target segment. A market segment deals with descriptive characteristics and specific group of customers with distinctive customer needs. It also involves dividing a broad target market into subsets of consumers,…show more content…
In October 2013, the company launched a music download service provided by 7digital. When advertising a product for this company, the price of products in the market should always be set under fair price. When a company evaluating different market segments, they must consider of three factors, that is, growth and segment size, segment structural attractiveness and also company’s resources and objectives. (Armstrong G. & Kotler P, 2005) The company 's market segment opportunities are certainly revealed by market segmentation. For all effective market segmentation, these distinctive categories have met the criteria as they are easily identified. All of the needs that can/will be demanded by customers will be comprised. A variety of video and music in each store is available for purchase so that customers can have tangible access through online in store. The diverse categories of each DVD and music units are of different target markets and each segment can be addressed with an individually targeted marketing mix. This approach generally offers a wide assortment of advantages for both, customers and the business. Hence, HMV is using the geographic, demographic, behavioral and psychographic approaches in their market segmentation. The market identification as well as segmentation of targeted markets is the most important element of each strategy. This particular company has to evaluate the various segments
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